§ 902 — Equine drug testing and expenses

§ 902. Equine drug testing and expenses. 1. In order to assure the\npublic's confidence and continue the high degree of integrity in racing\nat the pari-mutuel betting tracks, equine drug testing at race meetings\nshall be conducted by a state college or at a land grant university\nwithin this state. The commission shall promulgate any rules and\nregulations necessary to implement the provisions of this section,\nincluding administrative penalties of loss of purse money, fines, or\ndenial, suspension or revocation of a license for racing drugged horses.\n 2. Notwithstanding any inconsistent provision of the law, all costs\nand expenses of the gaming commission for equine drug testing and\nresearch shall be paid from an appropriation from the state treasury, on\nthe certification of the executive director of the commission, upon the\naudit and warrant of the comptroller and pursuant to a plan developed by\nthe commission as approved by the director of the budget; provided,\nhowever, the commission may direct the assessment imposed pursuant to\nsubdivision three of this section to be paid directly to the laboratory\nauthorized to conduct equine drug testing pursuant to subdivision one of\nthis section, provided however, upon direction of the commission, any\namounts directly paid to such laboratory shall constitute an encumbrance\nof appropriation.\n 3. (a) The commission may impose an assessment on each race track\nlicensed or franchised pursuant to this chapter, and an additional per\nstart fee, for any additional costs and expenses of equine drug testing\nand research conducted at a laboratory authorized pursuant to\nsubdivision one of this section, after all other funds for such purpose\nhave been expended.\n (b) (i) The commission shall establish an assessable amount by May\nfirst of each year based on the projected deficit of revenues deposited\ninto the racing regulation account established by section ninety-nine-i\nof the state finance law, including funds deposited pursuant to sections\none hundred fifteen, two hundred thirty-six, two hundred thirty-eight,\nthree hundred seven, three hundred eight, three hundred eighteen, five\nhundred twenty-seven, one thousand seven, one thousand eight, one\nthousand nine, one thousand fourteen, one thousand fifteen, one thousand\nsixteen, and one thousand eighteen of this chapter in relation to the\nconduct of racing, the amount of funds paid for equipment pursuant to\nsubdivision two of section two hundred twenty-eight of this chapter, the\namount of funds received by the commission from the purse enhancement\naccount for equine health and safety pursuant to paragraph two of\nsubdivision b of section sixteen hundred twelve of the tax law in\nrelation to video lottery terminal facilities at race tracks licensed\npursuant to articles two and three of this chapter, and by the amount of\nfunds generated by any other existing fees, taxes and assessments paid\nby race tracks or owners licensed pursuant to articles two and three of\nthis chapter for the purpose of equine drug testing, compared to\nexpenses in the racing regulation account. The commission shall impose\nthe assessable amount as an assessment upon each race track, and as an\nadditional per start fee on each owner. In no event shall the total\nassessable amount exceed the total expense projected by the commission\nfor equine drug testing and research conducted at a laboratory\nauthorized pursuant to subdivision one of this section during that year.\n (ii) The total value of the assessment imposed upon all race tracks\nshall be fifty percent of the assessable amount calculated by\nsubparagraph (i) of this paragraph, and shall be assessed in a manner\nthat is proportional to the number of starts at each race track during\nthe previous year. In no event shall any race track impose the cost of\nsuch assessment, in part or in whole, on any owner or trainer.\n (iii) The total value of the additional per start fee imposed on\nowners licensed pursuant to this chapter as an additional per start fee\nshall be fifty percent of the assessable amount calculated by\nsubparagraph (i) of this paragraph divided by the total number of starts\nin the previous year, and shall be assessed and paid in the same manner,\nand in addition to, the fee for the start of a horse in New York state\npari-mutuel races provided by section one hundred fifteen-a of this\nchapter.\n 4. Payment of the assessment imposed by this section shall be made to\nthe commission, or to the laboratory authorized to conduct equine drug\ntesting if directed by the commission, by each entity required to make\nsuch payments. Payments of such assessment shall be made on the last\nbusiness day of each month and shall cover one-twelfth of the annual\nassessment, provided however that all such payments required to be made\non the last day of April shall be due with the May payment. A penalty of\nfive percent, and interest at the rate of one percent per month from the\ndate the assessment, is due to the date of the payment of the\nassessment, and shall be payable in case any assessment imposed by this\nchapter is not paid when due. If the commission determines that any\npayment received under this section was paid in error, the commission\nmay cause the same to be refunded without interest out of any monies\ncollected thereunder, provided an application therefor is filed with the\ncommission within one year from the time the erroneous payment is made.\n 5. Any deficit in the racing regulation account on March thirty-first\nof each year, excluding any deficit attributed to the negative fund\nbalance as of March thirty-first, two thousand seventeen, shall be added\nto the assessable amount for the following year. Fifty percent of any\nsurplus in such account as of March thirty-first of each year, not to\nexceed the amount of the assessment imposed on race tracks in that year,\nshall be used to reduce the assessment imposed on each race track in the\nfollowing year in proportion to the amount paid by each race track in\nthe year of the surplus. Fifty percent of any surplus in such account as\nof March thirty-first of each year, not to exceed the total amount of\nthe additional start fees in that year, shall be used to reduce the\nadditional per start fee in the following year. Such reduction shall be\ncalculated in the same manner as the additional per start fee.\n 6. Not later than May first, each year, the commission shall submit to\nthe director of the budget, the temporary president of the senate and\nthe speaker of the assembly a report on the revenue generated by the\nassessment, the total cost of equine drug testing, and any projected\ndeficit or surplus in the racing regulation account. The commission\nshall also publish such report on the commission's website as soon as\npracticable.\n 7. A franchised racing corporation may, in its discretion and at its\nexpense, fund for the exclusive use or utilization of the commission,\nthe construction and equipping of an equine drug testing and research\nlaboratory pursuant to subdivision one of this section. Such corporation\nshall consult with the commission and relevant industry stakeholders\nregarding the proper scope and equipping of a laboratory. The siting and\nuse of such laboratory shall be pursuant to a long-term lease between\nthe corporation and the commission. The commission shall operate or\ncontract for the operation of such laboratory. The franchised\ncorporation shall prepare an initial report for the year two thousand\ntwenty-one, provided, however, the franchised corporation has elected to\nfund the construction and equipping of such laboratory. Such report\nshall be submitted to the governor, the speaker of the assembly, and the\ntemporary president of the senate, no later than the first day of April\ntwo thousand twenty-one. The gaming commission shall also make the\nreport public on their website. Such initial report shall include, but\nnot be limited to, information related to the siting and initial and\nongoing financing of the laboratory.\n